The Ministry of New and Renewable Energy (MNRE) has announced a new mechanism for releasing funds under the Utility Led Aggregation (ULA) Model of the PM Surya Ghar: Mufti Bijli Yojana. Released on October 6, 2025, the updated policy focuses on transparency, responsibility, and timely distribution of Central Financial Assistance (CFA).
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As per the revised system, CFA will be released only after the rooftop solar system is completely installed, examined, and commissioned. There is no need for any advance payments. This will ensure improved financial discipline and also reduces the chances of any delays or misuse of funds.
Transparent Fund Release via National Portal
The new procedure will function completely through the National Portal. State, Utility, or Executing Agencies will first issue work orders to sellers and upload all details, including consumer data and certified vendor bank information, to the portal.
After installation and commissioning are done, agencies will use the ‘ULA Redeem’ option to start FA disbursement. The system needs comprehensive entries of each consumer and vendor, confirming every transaction is transparent and noticeable.
The National Programme Implementation Agency (NPIA), selected as REC, will verify the installation reports and bank details before releasing the funds. MNRE will pre-allocate the funds to NPIA to allow smooth and speedy disbursements. Both the executing agencies and the utilities will receive notifications of completed transactions.
Strengthening Vendor Accountability and Efficiency
If a vendor updates their bank account information, the modification must go through NPIA for verification. This avoids fraud and ensures that funds reach the correct accounts.
MNRE has confirmed that the new procedure is applicable to all ULA proposals, including both utility-owned and consumer-owned rooftop solar models. All state authorities and implementing agencies should strictly comply with these measures.
The MNRE has confirmed that the new mechanism applies to all ULA proposals, covering both Utility-Owned and Consumer-Owned rooftop solar models. All state authorities and implementing agencies must follow these steps strictly.
The MNRE's new fund release mechanism under the PM Surya Ghar scheme is a crucial step towards transparent, efficient and responsible solar project implementation across India. It ensures that every rupee of public funding is used correctly and reaches the confirmed vendors promptly.
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